Published On: Fri, Mar 17th, 2017

Midday Market Review


Today in the morning the USD lowered against the EUR and the GBP, but after the publication of the EU trade balance data (the surplus was 15.7 billion against the expected 22.3 billion) the prices went down. The EUR/USD, pair lost 0.49% (lowered to 1.0730). After the correction the GBP/USD pair is trading in the area of 1.2370. The USD/JPY pair is trading in the sideway channel within 113.00-113.50 for the second day and can’t leave it yet. The AUD/USD is strengthening and grew by 0.48% today, reaching the level of 0.7700, which is the key level for the past few months.

The market is waiting for the fundamental news today: the Big Twenty Financial Ministers meeting result and the President of the USA Donald Trump meeting with the German Chancellor Angela Merkel results. The USA, represented by Financial Minister Steven Mnuchin, is expected to press the China, Japan and Germany to make them abandon the currency speculation policy. The Heads of the USA and Germany are expected to discuss the world economy problems. In particular, the EU Government can discuss the USA increasing the import tax by 20% and the agricultural products tax by 100%, which was promised by Trump. In this case the EU countries intend to submit a claim to the WTO, which can bring the both counties significant losses.

The raw materials markets grow today. Gold grew by 0.40% to the level of 1231.20. After the morning growth by 0.34% to the level of 17.34 now silver is lowering to the opening level of 17.28. The Brent oil grew by 0.79% to the level of 52.15, and the WTI — by 0.83% to the level of 49.55. The market is reacting to the Saudi Arabia Minister of Energy Khalid Al-Falih commentaries about the fact that the OPEC + Agreement can be extended in the world’s oil recources stay above an average 5 year values. However this cannot support the oil price for a long time.

The world indices are waiting for the positive information from the Financial Ministers of the Big Twenty meeting and are growing. FTSE100 renewed the year maxima today, growing to the level of 7445.5 (0.42%), the CAC40 renewed the year maxima, too, growing to the level of 5036.5 (0.42%). The DAX grew to 12113.5 (0.39%), the DOW — to 20970.5 (by 0.22%), the S&P500 — to 2383.5 (by 0.15%).

Forex Analysis

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